Wednesday, September 16, 2015

Fare regulation: Govt asks airlines to give suggestions

Domestic airlines will state before the Union government the steps they will take to regulate fares, especially in the festive season and on particular routes. The Centre feels the “high prices” of air tickets are giving the sector a “bad name” and airlines should create a mechanism to keep these in check.

Mahesh Sharma, minister of state for civil aviation, said the government would consider putting a cap on ticket prices if it failed to reach a consensus with carriers on the matter.

The ministry had called a meeting with chief executives of domestic carriers to discuss the issue. This is the second time in three months that the ministry has taken up the matter with airlines.

“Though airfares are within the basket in almost all sectors, the issue is giving a bad name (to the sector),” Civil Aviation Minister Ashok Gajapathi Raju told reporters after the meeting.
16/09/15 Business Standard
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